Amazon To Cut Deliveroo Stake To 11.5% In London IPO
Amazon.com is to cut its stake in British food delivery company Deliveroo to 11.5% in its upcoming initial public offering, from 15.8% previously, according to a prospectus published by the company.
Deliveroo this week began roadshows for a London IPO and set a price range of between £3.90 and £4.60 per share, which will give it a market value of between £7.6 billion (€8.8 billion) and £8.8 billion (€10.2 billion).
This includes the sale of new shares to raise £1 billion and about 128.2 million shares from existing shareholders at the final price.
According to the prospectus, Amazon is set to shed around 23.3 million shares as part of this, allowing the tech giant to raise between £90.87 million and £107.18 million from the deal.
Amazon raised its stake in Deliveroo to 16% last year in a deal that had to be cleared by the UK's competition watchdog, and participated in a $180 million private funding round in January that valued the firm at more than $7 billion.
Britain's Biggest Share Listing
The Amazon-backed food delivery company is set to be Britain's biggest share listing in more than seven years and has been held up by the UK government as a sign the City of London can still attract major IPOs following Britain's exit from the European Union.
In a short trading update on Monday, Deliveroo added that the total gross transaction value on its platform - which measures the total value of orders it receives - was up 121% in January and February this year compared to the same period in 2020.